Multiple Single Family Deal

[Eric G. Brown]

I have an opportunity to purchase 3 single family homes from a single owner in Denton, TX.  He is asking $185K, $185K and $160K (530K total).  I am considering offering him $475K for all 3.  Running my numbers:

Income:  $1700, $1700 and $1400 = $4800  total

Expenses:  $4122.00 total

Cash Flow:  $678 per month

Down Payment:  $95,000.00

Closing Costs:  $9,500.00

Total Investment:  $104,500.00

Annual Cash Flow:  $8,136.00

Cash on Cash ROI: 7.7%

Just looking for any feedback.  These are my first residential properties.  I own 3 commercial properties already but i sort of fell into them and had no idea what i was doing.

Thanks in advance.